The Confidential Marketing Process For Selling A Business And The Role Of A Business Broker

A unique challenge in your business selling process is that you cannot advertise certain confidential business details, yet you must target and get the attention of the right buyers. Specific details about the company such as the name of the company, the exact location and the unique products or services offered generally cannot be revealed to the public as it could be disastrous if employees, customers, competitors or other third parties found out that the business was for sale. So how do you market your business confidentially and grab the attention of the right buyers. The answer is that there are several possible options for developing a successful confidential marketing plan to bring your business to market, and you are developing a personalized plan that will best suit your unique business.

Your marketing plan and associated marketing materials should highlight what’s unique about your business without revealing so much information that you risk compromising confidentiality. Second, you identify the most likely buyers and structure your marketing plan and messaging to grab the attention of those buyers. The right buyer can be an individual, another company, a private equity group and / or other groups of potential investors. And third, you determine the best strategy for reaching out to your potential buyers.

Related: Are you looking to sell your business? Here are the next steps – Ted Jenkin

If an appropriate method of marketing your business is to advertise to the public; Using business listing websites, trade journals, trade shows, or any other suitable advertising medium can be effective. Or, a more targeted marketing strategy might be the best for your business. You may know specific buyers who would be interested in your business, and an industry research can be done to identify a list of potential buyers within your industry. In this targeted approach, the best strategy may be a proactive direct mail and phone campaign to contact this group of potential buyers. It might also be appropriate to execute a broader strategy that includes both public advertising and targeting a selected group of potential buyers.

Whatever marketing strategy is right for your business, the key tools that could be used in this process are some form of public advertising and / or a business profile often referred to as a “blind profile”. The profile is blind because it does not reveal confidential information, but provides key facts about the operations and financial performance of the company that buyers should see. Multiple versions of the blind profile may be required for your business if different types of potential buyers are contacted. A blind profile usually contains more information about your business than a public ad. It is often sent to a buyer after responding to an ad and is sometimes included with a letter in a direct mail campaign.

The most widely used form of public advertising for businesses in the market is business listing websites. SEO sites offer business owners the ability to provide a complete profile of their business without disclosing confidential information. Search options are available on ad sites that allow buyers to search for businesses based on criteria such as type of industry, geographic location, selling price, annual revenue, cash flow, availability of owner financing, etc. And, there is the ability to search by keywords to find a specific type of business. An experienced business broker knows how to write an ad on an SEO site that will best describe your business so that it is found and read by the right buyers. Too often, business owners give their business a very poor description. In my experience with buyers, they often express their frustration with how difficult it is to find businesses on ad sites that are accurately described with all the key information they need to determine if it is of a business they wish to pursue. This is one of the main reasons why some businesses do not generate strong buyer interest or attract the attention of good buyers on SEO sites.

Experienced business brokers and M&A professionals can help you develop a marketing plan and related documents. They know how to best describe your business in an advertisement and blind profile, and make sure it reaches the right audience of buyers. They know what attracts buyers and how to make your business a great acquisition opportunity. They know how to impress and capture the attention of senior executives, private equity groups and individual buyers. And, as buyers express their interest in the business, brokers know how to engage with buyers to determine if they are qualified in terms of education, skills, experience, level of interest and financial profile.

Related: Dos and Don’ts of Selling Your Business – Michael Ramatowski, Georgia Association of Business Brokers

The best M&A and M&A brokerage firms have marketing and industry research staff to help their brokers develop the marketing plan, blind profile, and other marketing materials that will be used to their clients. They have access to a variety of industry data sources that are sometimes needed to identify a list of potential buyers for a business. These companies have also developed several relationships with third parties that provide their customers with the best and widest possible exposure to the best buyers in the market. They have relationships and affiliations with various national and international business brokerage and mergers and acquisitions associations. And, they are in contact with thousands of private equity groups, companies, and other possible sources of buyers.

A big part of the success of the confidential sale of your business depends on developing and executing the right marketing plan for your unique business. If a business is not marketed in the right way, the businesses do not sell or the businesses are sold well below market value. If you are selling your business and need expert advice throughout the confidential process, you should consider the services of a business broker. Investing in the services of a business broker could result in the recognition of an after-tax gain on the sale of your business that will easily justify the broker’s fees.